FOR IMMEDIATE RELEASE
Densei-Lambda reports results, completes restructuring;
Forecasts return to profit in current year
TOKYO, May 26, 2000 - Densei-Lambda K. K. (Densei-Lambda), (TSE 6917) today announced results for the year to March 31, 2000. During this period Densei-Lambda completed its merger with Nippon Electric Industry Co., Ltd., (Densei), appointed a new President and management team and moved rapidly to focus its business on core areas while successfully disposing of non-core operations.
Consolidated sales more than doubled to \ 50.6 billion as Densei sales were consolidated for the first time. A number of factors, including significant provisions, depressed profits with operating profits falling 32.2 % to \1.67billion and a net loss of \4.02 billion was recorded. The major factors affecting the bottom line included restructuring costs, pension-related costs and the amortization of goodwill created by the merger with Densei.
In the current year Densei-Lambda forecasts sales growth in its core businesses driven by strong growth in demand from the telecommunications and IT markets and a return to profit as the benefits of restructuring flow through to the bottom line.
President Takeo Suzuki, who was elected as President of Densei-Lambda in February 2000, said, “Last year was a year of wide-reaching change at Densei-Lambda during which we merged the two companies, rapidly and successfully restructured our operations, disposed of non-core businesses and revamped our management team. The costs of this renewal of our company have significantly affected results for the year ending March 2000 but were essential in order to create a platform for solid and sustainable growth in the future.”
In regard to the outlook for the business in the future Suzuki commented, "Our restructuring is now largely complete and I am confident that we can achieve our aim of becoming one of the top manufacturers of switching power supplies and secure power systems both in Japan and in the global market. Our products are positioned in global growth areas and we will offer our customers higher quality products at a competitive price, in a timely manner and with prompt and thorough after-sales service. These are the basics of a manufacturing company and by following these principles we aim to generate stable growth and thereby reward shareholders, employees and customers."
Non-Consolidated results
Non-consolidated sales for the year ended March 31, 2000 rose 62.3% to \ 33.33 billion while profits, affected by similar factors to those affecting the consolidated accounts showed a recurring loss of \ 751 million and a net loss of \ 4.35 billion.
Further details of last year's results are included in the attached documents.
Prospects for the Current year
In the current year Densei-Lambda will continue to develop its core businesses. To benefit from the merger and to capture growth opportunities in the current IT revolution, the company intends to strengthen R&D, increase capital investment, consolidate production facilities, improve quality and productivity, make appropriate placement of human resources, and improve the personnel system. The Company seeks to be a leading company in its core businesses: the switching power supply business, the secure power business, and related services.
In the current year, sales of core businesses are expected to grow although contribution from disposed businesses will obviously drop out of the accounts. As a result, on a consolidated basis, the company expects sales of \ 49 billion, recurring profit of \ 1.5 billion and \ 700 million of net earnings. Non-consolidated forecasts are for sales of \ 36 billion, recurring profits of \ 1.0 billion and \ 300 million of net earnings.
-ends-
For further inquiries, please contact:
Masami Kobashi, Director, Densei-Lambda Tel: 3447-4411
Notes to Editors
Headquartered in Tokyo, Densei-Lambda is the Asian hub of operations for Invensys Power Systems. It is a research and development center of excellence for DC-DC converters and switching power supply product development, manufacturing and purchasing. Densei-Lambda also provides marketing, sales and service support for Invensys Power System’s battery and uninterruptible power supply products.

Invensys Power Systems is the American-based world leader of secure power, energy storage, power conversion and telecom energy systems with 16,000 employees and $2.5 billion in sales. Invensys Power Systems is one of four divisions of Invensys plc, the $12 billion London-based leader in automation and controls.